market analysis for business plan pdf

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How to Write a Market Analysis for a Business Plan

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A lot of preparation goes into starting a business before you can open your doors to the public or launch your online store. One of your first steps should be to write a business plan . A business plan will serve as your roadmap when building your business.

Within your business plan, there’s an important section you should pay careful attention to: your market analysis. Your market analysis helps you understand your target market and how you can thrive within it.

Simply put, your market analysis shows that you’ve done your research. It also contributes to your marketing strategy by defining your target customer and researching their buying habits. Overall, a market analysis will yield invaluable data if you have limited knowledge about your market, the market has fierce competition, and if you require a business loan. In this guide, we'll explore how to conduct your own market analysis.

How to conduct a market analysis: A step-by-step guide

In your market analysis, you can expect to cover the following:

Industry outlook

Target market

Market value

Competition

Barriers to entry

Let’s dive into an in-depth look into each section:

Step 1: Define your objective

Before you begin your market analysis, it’s important to define your objective for writing a market analysis. Are you writing it for internal purposes or for external purposes?

If you were doing a market analysis for internal purposes, you might be brainstorming new products to launch or adjusting your marketing tactics. An example of an external purpose might be that you need a market analysis to get approved for a business loan .

The comprehensiveness of your market analysis will depend on your objective. If you’re preparing for a new product launch, you might focus more heavily on researching the competition. A market analysis for a loan approval would require heavy data and research into market size and growth, share potential, and pricing.

Step 2: Provide an industry outlook

An industry outlook is a general direction of where your industry is heading. Lenders want to know whether you’re targeting a growing industry or declining industry. For example, if you’re looking to sell VCRs in 2020, it’s unlikely that your business will succeed.

Starting your market analysis with an industry outlook offers a preliminary view of the market and what to expect in your market analysis. When writing this section, you'll want to include:

Market size

Are you chasing big markets or are you targeting very niche markets? If you’re targeting a niche market, are there enough customers to support your business and buy your product?

Product life cycle

If you develop a product, what will its life cycle look like? Lenders want an overview of how your product will come into fruition after it’s developed and launched. In this section, you can discuss your product’s:

Research and development

Projected growth

How do you see your company performing over time? Calculating your year-over-year growth will help you and lenders see how your business has grown thus far. Calculating your projected growth shows how your business will fare in future projected market conditions.

Step 3: Determine your target market

This section of your market analysis is dedicated to your potential customer. Who is your ideal target customer? How can you cater your product to serve them specifically?

Don’t make the mistake of wanting to sell your product to everybody. Your target customer should be specific. For example, if you’re selling mittens, you wouldn’t want to market to warmer climates like Hawaii. You should target customers who live in colder regions. The more nuanced your target market is, the more information you’ll have to inform your business and marketing strategy.

With that in mind, your target market section should include the following points:

Demographics

This is where you leave nothing to mystery about your ideal customer. You want to know every aspect of your customer so you can best serve them. Dedicate time to researching the following demographics:

Income level

Create a customer persona

Creating a customer persona can help you better understand your customer. It can be easier to market to a person than data on paper. You can give this persona a name, background, and job. Mold this persona into your target customer.

What are your customer’s pain points? How do these pain points influence how they buy products? What matters most to them? Why do they choose one brand over another?

Research and supporting material

Information without data are just claims. To add credibility to your market analysis, you need to include data. Some methods for collecting data include:

Target group surveys

Focus groups

Reading reviews

Feedback surveys

You can also consult resources online. For example, the U.S. Census Bureau can help you find demographics in calculating your market share. The U.S. Department of Commerce and the U.S. Small Business Administration also offer general data that can help you research your target industry.

Step 4: Calculate market value

You can use either top-down analysis or bottom-up analysis to calculate an estimate of your market value.

A top-down analysis tends to be the easier option of the two. It requires for you to calculate the entire market and then estimate how much of a share you expect your business to get. For example, let’s assume your target market consists of 100,000 people. If you’re optimistic and manage to get 1% of that market, you can expect to make 1,000 sales.

A bottom-up analysis is more data-driven and requires more research. You calculate the individual factors of your business and then estimate how high you can scale them to arrive at a projected market share. Some factors to consider when doing a bottom-up analysis include:

Where products are sold

Who your competition is

The price per unit

How many consumers you expect to reach

The average amount a customer would buy over time

While a bottom-up analysis requires more data than a top-down analysis, you can usually arrive at a more accurate calculation.

Step 5: Get to know your competition

Before you start a business, you need to research the level of competition within your market. Are there certain companies getting the lion’s share of the market? How can you position yourself to stand out from the competition?

There are two types of competitors that you should be aware of: direct competitors and indirect competitors.

Direct competitors are other businesses who sell the same product as you. If you and the company across town both sell apples, you are direct competitors.

An indirect competitor sells a different but similar product to yours. If that company across town sells oranges instead, they are an indirect competitor. Apples and oranges are different but they still target a similar market: people who eat fruits.

Also, here are some questions you want to answer when writing this section of your market analysis:

What are your competitor’s strengths?

What are your competitor’s weaknesses?

How can you cover your competitor’s weaknesses in your own business?

How can you solve the same problems better or differently than your competitors?

How can you leverage technology to better serve your customers?

How big of a threat are your competitors if you open your business?

Step 6: Identify your barriers

Writing a market analysis can help you identify some glaring barriers to starting your business. Researching these barriers will help you avoid any costly legal or business mistakes down the line. Some entry barriers to address in your marketing analysis include:

Technology: How rapid is technology advancing and can it render your product obsolete within the next five years?

Branding: You need to establish your brand identity to stand out in a saturated market.

Cost of entry: Startup costs, like renting a space and hiring employees, are expensive. Also, specialty equipment often comes with hefty price tags. (Consider researching equipment financing to help finance these purchases.)

Location: You need to secure a prime location if you’re opening a physical store.

Competition: A market with fierce competition can be a steep uphill battle (like attempting to go toe-to-toe with Apple or Amazon).

Step 7: Know the regulations

When starting a business, it’s your responsibility to research governmental and state business regulations within your market. Some regulations to keep in mind include (but aren’t limited to):

Employment and labor laws

Advertising

Environmental regulations

If you’re a newer entrepreneur and this is your first business, this part can be daunting so you might want to consult with a business attorney. A legal professional will help you identify the legal requirements specific to your business. You can also check online legal help sites like LegalZoom or Rocket Lawyer.

Tips when writing your market analysis

We wouldn’t be surprised if you feel overwhelmed by the sheer volume of information needed in a market analysis. Keep in mind, though, this research is key to launching a successful business. You don’t want to cut corners, but here are a few tips to help you out when writing your market analysis:

Use visual aids

Nobody likes 30 pages of nothing but text. Using visual aids can break up those text blocks, making your market analysis more visually appealing. When discussing statistics and metrics, charts and graphs will help you better communicate your data.

Include a summary

If you’ve ever read an article from an academic journal, you’ll notice that writers include an abstract that offers the reader a preview.

Use this same tactic when writing your market analysis. It will prime the reader of your market highlights before they dive into the hard data.

Get to the point

It’s better to keep your market analysis concise than to stuff it with fluff and repetition. You’ll want to present your data, analyze it, and then tie it back into how your business can thrive within your target market.

Revisit your market analysis regularly

Markets are always changing and it's important that your business changes with your target market. Revisiting your market analysis ensures that your business operations align with changing market conditions. The best businesses are the ones that can adapt.

Why should you write a market analysis?

Your market analysis helps you look at factors within your market to determine if it’s a good fit for your business model. A market analysis will help you:

1. Learn how to analyze the market need

Markets are always shifting and it’s a good idea to identify current and projected market conditions. These trends will help you understand the size of your market and whether there are paying customers waiting for you. Doing a market analysis helps you confirm that your target market is a lucrative market.

2. Learn about your customers

The best way to serve your customer is to understand them. A market analysis will examine your customer’s buying habits, pain points, and desires. This information will aid you in developing a business that addresses those points.

3. Get approved for a business loan

Starting a business, especially if it’s your first one, requires startup funding. A good first step is to apply for a business loan with your bank or other financial institution.

A thorough market analysis shows that you’re professional, prepared, and worth the investment from lenders. This preparation inspires confidence within the lender that you can build a business and repay the loan.

4. Beat the competition

Your research will offer valuable insight and certain advantages that the competition might not have. For example, thoroughly understanding your customer’s pain points and desires will help you develop a superior product or service than your competitors. If your business is already up and running, an updated market analysis can upgrade your marketing strategy or help you launch a new product.

Final thoughts

There is a saying that the first step to cutting down a tree is to sharpen an axe. In other words, preparation is the key to success. In business, preparation increases the chances that your business will succeed, even in a competitive market.

The market analysis section of your business plan separates the entrepreneurs who have done their homework from those who haven’t. Now that you’ve learned how to write a market analysis, it’s time for you to sharpen your axe and grow a successful business. And keep in mind, if you need help crafting your business plan, you can always turn to business plan software or a free template to help you stay organized.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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The Ultimate Guide to Market Analysis for Your Business Plan

When creating a business plan , conducting a thorough market analysis is essential to understand your target market, industry trends, and the competitive landscape. A well-executed market analysis for a business plan provides the foundation for informed decision-making, helping you develop strategies that capitalize on opportunities and mitigate potential risks.

In this article, we'll explore the importance of market analysis in a business plan, outline the steps for conducting one effectively, and discuss best practices for ensuring that your analysis is comprehensive and insightful.

What Is Market Analysis for a Business Plan?

Market analysis is a critical component of a business plan that involves gathering and interpreting data about your target market, industry trends, and competitors. It provides a clear picture of the landscape in which your business will operate, enabling you to make data-driven decisions and develop strategies that align with your business plan objectives.

A comprehensive market analysis for a business plan should include:

• Target market identification and segmentation
• Industry trends and growth forecasts
• Competitor analysis
• Market size and potential market share
• Pricing and positioning strategies

Why Do You Need to Conduct Market Analysis for a Business Plan?

Conducting market analysis is critical to the development of a business plan for several reasons:

• Feasibility assessment: Market analysis helps determine whether your business idea is viable and likely to succeed in the current market environment,, which is essential to creating a realistic business plan.
• Informed decision-making: By providing insights into your target market, industry trends, and competition, market analysis enables you to make data-driven decisions that support your business plan's objectives.
• Investor confidence: Including a thorough market analysis in your business plan demonstrates to potential investors that you have a deep understanding of your industry and target market, increasing their confidence in your ability to execute your plan successfully.
• Competitive advantage: Market analysis helps identify your competitors' strengths, weaknesses, and market positioning, allowing you to develop strategies that differentiate your business and strengthen your business plan.

Steps to Conduct Market Analysis for a Business Plan

• Define your target market: Identify your ideal customer and segment your target market based on shared characteristics to ensure your business plan is tailored to their needs and preferences.
• Analyze industry trends: Research your industry's current state, growth projections, and emerging trends to identify factors that may impact your business plan, such as technological advancements or regulatory changes.
• Conduct competitor analysis: Evaluate your competitors' market share, strengths, weaknesses, and unique selling propositions to identify opportunities for differentiation in your business plan.
• Determine market size and potential: Estimate the total size of your target market and your potential market share to set realistic goals and projections in your business plan.
• Develop pricing and positioning strategies: Based on the results of your market analysis, determine the optimal pricing and positioning for your products or services to align with the goals of your business plan.

Best Practices for Effective Market Analysis in a Business Plan

• Use multiple data sources: Gather data from a variety of sources to ensure a comprehensive and balanced analysis that supports your business plan.
• Conduct primary research: Engage directly with potential customers to gain valuable insights that can inform your business plan's strategies and tactics.
• Stay up-to-date: Regularly monitor industry trends, competitor activities, and market conditions to ensure your business plan remains relevant and accurate.
• Collaborate with experts: Consult with industry experts, mentors, or business advisors to gain valuable insights and validate your findings for your business plan.
• Present findings clearly: Use visuals, such as charts, graphs, and infographics, to present your market analysis findings in a clear and engaging manner within your business plan.

By conducting a comprehensive market analysis for your business plan, you'll gain a deep understanding of your target market, industry landscape, and competitive environment. This knowledge will inform your business plan's strategies, guide your decision-making, and ultimately increase your chances of success.

Remember to regularly review and update your market analysis as your business grows and market conditions evolve to ensure that your business plan remains adaptable and well-positioned for long-term success.

Market analysis templates

Turn market research into insights

Save time, highlight crucial insights, and drive strategic decision-making

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22 July 2023

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To outlast competitors, your business needs to stay ahead of the curve. To do this, you need to have your finger on the pulse of the market.

Conducting a market analysis can provide you with detailed information about all areas of your industry and help guide decisions for the greatest growth potential.

Benefits of conducting a market analysis

A market analysis is one of the things a business can do that benefits nearly every facet of the business. From your marketing team to your product development manager, all the way up to the CEO, the insights provided by a market analysis will help to drive important decisions and push the business forward. 

Some of the ways in which it can do that are:

Identifying customer needs and preferences

Your reputation is made or broken by how well you meet the needs and preferences of your target customers. Market analysis gives you deep insights into those needs and preferences, allowing you to tailor your products, services, and marketing strategies to better meet them. You'll build better customer satisfaction and increase brand loyalty in the process.

Identifying competitors and market share

You don't just have to meet your customers' needs; you have to do a better job of it than your competitors. This will not be possible if you don't understand the strengths and weaknesses of those competitors. A market analysis can provide that information, giving you the data you need to set yourself apart from them.

Identifying market opportunities and threats

Markets aren't static. Your business can't be static, either. Through ongoing market analysis, you'll identify opportunities and threats as they occur, allowing you to pivot gracefully to best handle those situations. You'll be able to better predict opportunities for growth and better prepare for potential threats such as new competitors or changing market conditions.

Enhancing product development and innovation

With more information about customer needs and preferences and deeper insight into emerging market trends, you'll be positioned nicely for a more efficient product development process. You'll be able to make product decisions quickly based on the knowledge you've gained and develop products the market will love.

Supporting business planning and strategy

Data plays an important role in planning and decision-making from the very first days of a startup to a large corporation planning its next few years. A market analysis helps you identify target markets, build your value proposition, and set realistic goals and objectives. They can help guide the feasibility of new business ventures or business expansions.

Component of a market analysis

A market analysis consists primarily of three components. Although they overlap, each focuses the bulk of its intent on one specific area of analysis. 

Industry examination

This part of the analysis is focused on the specific industry you operate in or are hoping to expand into. It examines the trends, characteristics, and dynamics of the industry. 

To do so, it looks at the key players in the industry and its market size and growth rate. It also examines factors impacting entry into the market, such as technological barriers, regulatory requirements, supply chain logistics, and more.

The industry analysis can be broken down into the following steps:

Industry size and growth — Determine the market size and growth rate. For a complete picture, consider historical data and future projections.

Industry structure — Identify the key players, market segments, and distribution channels within the industry. When prudent, focus on the region you'll be working within.

Market trends — Analyze the current and emerging trends, innovations, and technologies influencing the industry. Look for opportunities to capitalize on those trends.

Competitive forces — Assess the competitive landscape. Look at the bargaining power of buyers and suppliers and competitive rivalry within the industry.

Regulatory and legal factors — Examine any policies, regulations, or laws that must be accounted for when entering the industry. When needed, consult with a lawyer familiar with the industry.

Market examination

The market examination focuses on understanding a specific target market within the industry.

When conducting a market analysis, you'll gather data about customers within the industry—their demographics, buying behavior, needs and preferences, and demand for products or services. This part of your analysis helps you identify your target audience and help you begin to form your value propositions.

Conducting the market examination portion of the market analysis consists of the following steps:

Target market segmentation — Segment customer segments based on characteristics such as demographics, psychographics, behavior, location, and other factors. This helps you decide which market segments are a good fit for you.

Customer analysis — For each segment, research the needs, preferences, motivations, and purchasing behavior of those customers. For this, you can limit yourself to only those market segments you're interested in appealing to.

Market size and growth — Gather detailed data on the market size. Examine the historical size of the market to identify any trends that might impact your perception of the market. Look at future predictions to see where the market will be in years after you've entered it.

Market trends — Examine customer behavior to determine what their needs and preferences are now, how they've changed in the future, and where they might be heading. Look also for customers' behavior in the market and the strength of their demand for products and services.

Market gaps and opportunities — Armed with your data on customers and market trends, look for any gaps in the market that currently aren't being met by the existing players in the space. Explore each gap further to examine its market viability.

Competitor examination

The final area of the market analysis is the competitor examination.

During this part of the analysis, the focus is squarely on the competitors operating in the industry. A close look will be taken at their strengths and weaknesses and the strategies they use within the market. This helps you further refine your value proposition and set yourself apart from other market players.

For the competitor examination, follow these steps:

Competitive analysis — Identify key competitors in the industry and research them thoroughly. Analyze their market share, product offerings, pricing strategies, and marketing tactics. Look at their distribution and supply channels to better understand how they function in the industry.

SWOT analysis — A SWOT analysis assesses the strengths, weaknesses, opportunities, and threats posed by competitors. It tells you what you need to be wary of when dealing with your competitors and potential avenues for gaining a competitive advantage.

Differentiation — With the help of your SWOT analysis and the other data you've gathered, look for areas where gaps in the market mesh with weaknesses in the competitive landscape. These are areas you can focus on to differentiate yourself from your competition.

Competitive advantage — Understand the value proposition of your competitors, both as they state it and as customers perceive it. These factors will identify their competitive advantages. Develop a plan to work around these advantages or turn them in your favor.

8 market analysis templates

As you can see, there are many steps within the three areas of market analysis. Getting a template to guide you through the ones you're working on can save a lot of time.

Below, we've gathered eight quality templates for some of the most important aspects of market analysis. All of the companies linked provide a host of other templates to fit other aspects of the analysis as well.

1. Market research kit

2. market analysis.

This market analysis template streamlines business market research by utilizing secondary sources and analyzing market reports and industry data. It saves time, emphasizes key insights, and informs strategic decision-making.

3. SWOT analysis

This SWOT analysis template helps assess strengths, weaknesses, opportunities, and threats in a concise and organized manner. It will help facilitate strategic planning and decision-making.

4. Risk assessment 

This risk assessment template , integrated with market analysis, enables businesses to identify and evaluate potential risks associated with market dynamics and other potential barriers.

5. Competitive analysis 

This template helps to systematically evaluate the strengths and weaknesses of competitors. It provides a structured approach to research, and it analyzes its products, services, target market, marketing strategies, and financial performance.

6. Marketing SWOT analysis

This marketing SWOT analysis template allows for evaluating a company's marketing strategies. It helps identify strengths and weaknesses internally while analyzing opportunities and threats in the market. 

7. Market segmentation

This template aids in analyzing geographic, demographic, psychographic, and behavioral segments to better understand the target audience's preferences and needs. It enables effective targeting and messaging.

8. Market potential analysis

This market potential analysis template offers a comprehensive and customizable solution for analyzing market size, trends, segmentation, SWOT analysis, and new product launch strategy.

Here are 8 templates to analyze market reports, industry data, and other relevant documents.

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Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

Download Simple Business Plan Template - PDF

Lean Business Plan Template PDF

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

Download Lean Business Plan Template - PDF

Simple 30-60-90 Day Business Plan Template PDF

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

Download Simple 30-60-90 Day Business Plan Template

PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

Download One-Page Business Plan Template

If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

Download One-Page Lean Business Plan Template - PDF

One-Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

Download One-Page 30-60-90 Day Business Plan Template

For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

Download Simple Small Business Plan Template

Fill-In-the-Blank Small Business Plan Template PDF

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

Download Fill-In-the-Blank Small Business Plan Template - PDF

One-Page Small Business Plan Template PDF

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

Download Nonprofit Business Plan Template - PDF

One-Page Business Plan for Nonprofit Organization PDF 

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

Download Sample Business Plan Outline Template - PDF

Sample Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

Download Business Financial Plan Template

PDF  | Smartsheet

For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”

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How to Write and Conduct a Market Analysis

3 min. read

Updated January 3, 2024

A market is the total sum of prospective buyers, individuals, or organizations that are willing and able to purchase a business’s potential offering. A market analysis is a detailed assessment of the market you intend to enter. It provides insight into the size and value of the market, potential customer segments, and their buying patterns.

In this section, we’ll be covering what information to include in your business plan after completing your research. If you’re struggling with the research itself, you should check out our market research resources for step-by-step guidance.

• How to write your market analysis

The information featured in your market analysis should focus on firmly defining who your customers are. Here are the two steps you need to take:

Define your target market

Finding your target market requires segmentation based on demographic and psychographic information until you reach the ideal customer. You need to address who they are and how you identified them.

Target market examples

A target market analysis is a key part of any business plan. Let’s walk you through some examples.

Determine your market size

Identifying your potential customers isn’t enough. You also need to prove that the size of the market can support your business. To do this, it’s helpful to define what’s available, serviceable, and can be obtained.

Optional information to include

The main purpose of the market analysis is to show who your customers are. While defining your target market may be enough, it can be helpful to include some of the following supporting details.

Show that you know your industry

Before starting a business, you should know the state of your industry and where it’s headed. This includes industry metrics you’ve collected, any barriers to entry, emerging trends, or common success factors.

Write a customer analysis

Conducting a customer analysis provides additional depth to your target audience. You’ll know them better and go beyond just segmentation.

Use a customer persona to describe your customers

It can be difficult for you, your employees, and potential investors to visualize who your customers are based solely on data. Creating a customer persona can bring them to life and support your target market choice.

• Why conduct a market analysis?

Conducting any sort of in-depth research can be a time-intensive process. However, the benefits far outweigh the investment—so much so that it’s recommended that you revisit your market analysis at least once a year in order to stay on top of emerging trends or changes in the market.

As part of your business plan, it demonstrates that you have a firm understanding of your customers. Here are the other benefits gained by completing a market analysis:

Reduce risk

If you really understand your potential customers and market conditions, you’ll have a better chance of developing a viable product or service. It also helps you explore if your idea will work or not. If you determine that the market size can’t sustain your business, there are too many barriers, high starting costs, intense competition, or some other factor that would lead to a higher chance of failure—you can pivot and avoid wasting your hard-earned time and money.

Better position your business

Researching the market landscape will help you strategically position your business. This may be done through pricing, specific features, production/distribution, or any other method to differentiate your business and make it more attractive to your target audience.

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Verify product/market fit

Part of positioning your business is determining if there is a sustainable market for your business. This starts with segmenting and identifying your ideal customers. It then involves a process of gathering feedback, gauging interest, and finding any sort of demonstrable traction. To learn more about finding product market fit, check out the market research section of our Starting a Business Guide.

Inform investors

Research is not only valuable for informing you as a business owner but in convincing investors and lenders that your idea is worth funding. In many ways, the fact that you spent time pulling together viable information is just as important as the information itself. It shows that you care about finding success as a business owner and are willing to put in the work, even at this early stage.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

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Learn from the business planning experts, resources to help you get ahead, market analysis, table of contents.

The Market Analysis section of a business plan is crucial, providing detailed insights into the business environment. It helps entrepreneurs understand their industry, target markets , competition, and the broader economic landscape. This analysis is essential for informed decision-making, strategic planning, risk mitigation, and building investor or banker confidence.

However, before diving into the details of market analysis, it’s imperative for entrepreneurs to have a profound understanding of their target customer.

This foundational step is crucial as it shapes the entire market analysis process, ensuring that the insights gained are relevant and actionable for your specific business idea.

Divergent Paths to Understanding Your Customer

• Model-Based Planning®:  Ideal for experienced entrepreneurs in well-defined industries, Model-Based Planning® offers a structured, model-specific framework. It includes pre-developed customer profiles that guide focused market analysis.
• Pre-Vision Interviews:  Suited for entrepreneurs at the idea phase or those entering new markets, Pre-Vision Interviews establish deep customer understanding. This approach is crucial for businesses that aim to be first-movers or fast-followers and is often vital for those seeking investor capital. For entrepreneurs at the idea stage or entering new markets, delve into the detailed customer insights with Pre-Vision Interviews by   clicking here .

With a clear understanding of your customers, through either Model-Based Planning® or Pre-Vision Interviews , you’re now ready to delve into the various components of Market Analysis, as detailed in the following sections of this webpage.

Components of Market Analysis

Market analysis summary.

• Role as a Synthesis of Findings:  The Market Analysis Summary encapsulates the key findings from your market research . It serves as an executive overview, providing a snapshot of the market’s health, potential, and challenges. This summary should highlight significant points such as market size, growth projections, key trends, and competitive landscape.
• Writing it Last:  It’s recommended to write the summary after completing all other sections of the market analysis. This approach ensures that the summary accurately reflects the comprehensive understanding gained from detailed research.

Detailed Market Analysis

• Understanding Market Size, Growth Rate, and Trends:  Assess the size of the market, its growth rate over time, and key trends affecting it. This includes demographic shifts, technological advancements, and changes in consumer behavior. Use reliable data sources and forecasting methods to provide a well-rounded view of the market.
• Identifying Target Market Segments:  Define the specific customer segments within the market that your business will target. Consider factors like demographics , psychographics, geographic location, and buying behaviors. Tailor your marketing strategies to these segments to maximize impact and efficiency.

Industry Analysis

• Current State of the Industry:  Provide an overview of the industry, including its history, current status, and major players. Discuss the industry’s regulatory environment and any recent changes that might affect the business.
• Industry Structure and Dynamics:  Analyze the industry’s structure, including its supply chain , distribution channels , and major competitors. Evaluate the industry’s competitive dynamics, market entry barriers, and typical profit margins.

Trends Analysis

• Identifying and Evaluating Trends:  Identify current and emerging trends within the industry and market. These could be technological advancements, changes in consumer preferences, or shifts in regulatory policies. Analyze how these trends will impact the industry and your business specifically.
• Impact of Trends on Industry and Target Market:  Discuss the potential opportunities and threats these trends present. Plan strategies to leverage opportunities and mitigate risks associated with these trends.

Competitor Analysis

• Identifying Key Competitors:  List the major competitors in your market, focusing on those directly competing with your business. Assess their market share, strengths, weaknesses, and strategic positioning.
• Assessing Competitors’ Strengths, Weaknesses, and Strategies:  Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each key competitor. Understand their strategies and how they have been successful or fallen short in the market.

Utilizing Research Tools in Market Analysis

Role of ibis world, esri, and statista in market research.

• IBIS World:  IBIS World is renowned for its comprehensive collection of industry reports and business environment profiles. It offers detailed insights into market conditions, industry trends, and competitive landscapes. These reports are pivotal for understanding industry dynamics and forecasting future market developments.
• ESRI:   ESRI , particularly through its ArcGIS platform, provides a wealth of location-based data and analytics. ESRI’s Market Potential data, for example, offers insights into consumer behavior and demand across various product and service categories. This data is instrumental in understanding geographical market trends and potential customer bases, making it invaluable for businesses seeking to target specific locations or demographics​​​​​​.
• Statista:   Statista is a leading statistics portal, offering access to data from market and opinion research institutions, as well as from business entities and government institutions. It’s a versatile tool for market analysis, providing up-to-date data on various industries, including market sizes, trends, and forecasts.

Leverage These Tools for Quality Research

• Deep Dive into Industry Reports:  Utilize IBIS World for in-depth industry reports to understand your market’s size, trends, and competitive landscape.
• Geographical and Demographic Analysis:  Use ESRI’s tools to analyze market potential based on location and demographics, helping to identify where your customers are and their spending behaviors.
• Statistical Data for Market Trends:  Leverage Statista for comprehensive statistical data to support your market size estimates, trend analysis, and forecasting.

Identifying Industry-Specific Resources

• Look for sources that provide up-to-date, comprehensive, and accurate data.
• Ensure the sources are recognized and respected within the industry.
• Consider the depth of information provided; more detailed reports often offer better insights.
• Trade associations often publish detailed reports on industry trends.
• Government databases can provide reliable statistics on various industries.
• Academic journals and publications can offer in-depth analysis and forecasts.

Incorporating these tools into your market analysis process will enhance the quality of your research, providing a solid foundation for your business plan.

Conducting Competitor Analysis

Importance of personal involvement in competitor research.

Engaging in competitor research personally offers invaluable insights. It allows you to observe and understand your competitors’ strengths and weaknesses from a customer’s perspective. This direct engagement is crucial for developing strategies to differentiate and compete effectively.

Techniques for Effective Competitive Analysis

• Talk to Competitors’ Customers:  Engaging with the customers of your competitors can provide candid insights into what they value and their experiences. This feedback is often more unfiltered and honest than promotional materials or sales pitches.
• Experience Competitors’ Offerings:  Purchase and use the products or services of your competitors. This firsthand experience can reveal strengths to emulate and weaknesses to exploit in your own offerings.
• Visit Competitor Locations:  If applicable, visit their physical establishments. Observe their customer service, store layout, product presentation, and overall customer experience.
• Analyze Competitor Websites:  Review their online presence, noting their branding, communication style, customer engagement, and online services. Look for areas where they excel or lack, providing opportunities for your business to stand out.
• Examine Online Reviews:  While being cautious of potentially manipulated reviews, pay special attention to less-than-perfect ratings. Trends in these reviews can highlight areas that customers feel need improvement.
• Market Positioning:  Understand how your competitors position themselves in the market. Analyze their marketing materials, advertising strategies, and any unique selling propositions they highlight.
• Pricing Strategies:  Observe their pricing models. Are they competing on price, quality, service, or innovation? Understanding their approach can guide your own pricing strategy.
• Supplier and Partner Relationships:  Investigate their supply chain and partnerships. This might give insights into their operational efficiencies or dependencies.
• Customer Service Analysis:  Evaluate their customer service approach. Are there gaps in their customer support that your business could fill?
• Social Media Engagement:  Analyze their social media presence. How do they interact with customers online? What kind of content generates the most engagement?
• Employee Feedback:  If possible, gain insights from current or former employees about the internal workings of the competitor’s business. This can provide a unique perspective on their operations, culture, and challenges.

Outsourcing Market Analysis

When to consider outsourcing.

Outsourcing market analysis can be a strategic decision for businesses, especially when internal resources are limited or when specialized expertise is required. Consider outsourcing when:

• Lack of In-House Expertise:  If your team lacks the skills or experience in conducting in-depth market research.
• Time Constraints:  When you’re under tight timelines to develop a business plan and need to expedite the research process.
• Need for Specialized Knowledge:  Certain industries or markets may require specialized knowledge that an external expert or agency can provide.
• Objective Perspective:  Sometimes, an external perspective can provide unbiased and fresh insights that internal teams might overlook.

Business Plan Writer Reviews

For guidance on choosing the right professional or agency for outsourcing your market analysis, check out our Business Plan Writer Reviews .

Essential Qualifications of Professional Business Plan Writers

When hiring a professional for market analysis, ensure they possess the following qualifications:

• Active Subscriptions to Key Research Organizations:  Verify that they have access to essential market research tools like IBIS World, ESRI, Statista, and others relevant to your industry. Active subscriptions indicate that they can provide current and comprehensive data.
• Experience and Expertise in Diverse Industry Research:  Look for professionals with a proven track record in conducting market analysis across various industries. This experience demonstrates their ability to adapt research methods to different business models and market conditions.
• Understanding of Different Business Models:  The consultant should understand various business models, especially if your business falls into a niche or emerging market. Their ability to adapt their research methodology to fit different models is crucial.
• Analytical Skills:  They should possess strong analytical skills to interpret data effectively and provide actionable insights.
• Communication Skills:  Good communication skills are essential for them to convey complex information in an understandable manner, aligning with your business needs.
• References and Past Work Samples:  Ask for references or samples of their past work to assess the quality and relevance of their research.

Market Analysis in Your Business Plan

Conducting a thorough market analysis is an indispensable part of developing a robust business plan. It provides critical insights into the market size, growth potential, industry trends, competitive landscape, and customer preferences. This analysis forms the foundation upon which strategic decisions are made, risks are assessed, and opportunities are identified.

The insights gained from the market analysis should be seamlessly integrated into your business plan.

A well-executed market analysis can significantly enhance the effectiveness and persuasiveness of your business plan, especially in the eyes of stakeholders, bankers, or potential investors.

Up Next: Developing the Organizational Structure

Having completed the market analysis, the next step in your business planning journey is to develop the organizational structure of your business. This involves outlining the management team, defining roles and responsibilities, and establishing the operational framework of your organization. A clear and efficient organizational structure is crucial for effective management and smooth operation.

Proceed to Organizational Structure

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Business Plan Section 5: Market Analysis

Find out the 9 components to include in the market analysis portion of your business plan, plus 6 sources for market analysis information.

This is the part of your business plan where you really get to shine and show off that awesome idea you have. Of course, your product or service is the best! Now, let’s talk about how you know it’s a hit. Be prepared to show you know your market AND that it’s big enough for you to build a sustainable, successful business .

In writing up your market analysis, you’ll get to demonstrate the knowledge you’ve gained about the industry, the target market you’re planning to sell to, your competition, and how you plan to make yourself stand out.

A market analysis is just that: a look at what the relevant business environment is and where you fit in. It should give a potential lender, investor, or employee no doubt that there is a solid niche for what you’re offering, and you are definitely the person to fill it. It’s both quantitative, spelling out sales projections and other pertinent figures, and qualitative, giving a thoughtful overview of how you fit in with the competition. It needs to look into the potential size of the market, the possible customers you’ll target, and what kind of difficulties you might face as you try to become successful. Let’s break down how to do that.

What Goes Into A Business Plan Market Analysis?

Industry description and outlook.

Describe the industry with enough background so that someone who isn’t familiar with it can understand what it’s like, what the challenges are, and what the outlook is. Talk about its size, how it’s growing, and what the outlook is for the future.

Target Market

Who have you identified as your ideal client or customer ? Include demographic information on the group you’re targeting, including age, gender and income level. This is the place to talk about the size of your potential market, how much it might spend, and how you’ll reach potential customers. For example, if women aged 18 to 54 are your target market, you need to know how many of them there are in your market. Are there 500 or 500,000? It’s imperative to know. Similarly, if your product or service is geared toward a high-end clientele, you need to make sure you’re located in an area that can support it.

Market Need

What factors influence the need for your product or service? Did the need exist before or are you trying to create it? Why will customers want to do business with you, possibly choosing you over someone else? This is where you can briefly introduce the competitive edge you have, although you’ll get into that in more depth in following sections. Focus on how the product or service you’re offering satisfies what’s needed in the market.

Market Growth

While no one can predict the future, it’s important to get a possible idea of what business may be like down the road and make sales projections. Have the number of people in your target market been increasing or decreasing over the last several years? By how much per year? To make an intelligent forecast, you have to start with current conditions, then project changes over the next three to five years.

Market Trends

You need to take a look at trends the same way you look at population and demographics. Is there a shift to more natural or organic ingredients that might impact your business? How might energy prices figure in? The easy availability of the internet and smartphone technology? The questions will be different for every type of business, but it’s important to think about the types of changes that could affect your specific market. In this section, you can cite experts from the research you’ve done-a market expert, market research firm, trade association, or credible journalist.

Market Research Testing

Talk about what kind of testing and information gathering you’ve done to figure out where you stand in the market. Who have you spoken to about the viability of your product? Why are you confident of its success? Again, if you can, cite experts to back up your information.

Competitive Analysis

There’s no way to succeed unless you’ve examined your competition. It might be helpful to try analyzing your position in the market by performing a SWOT analysis. You need to figure out their strengths and the weaknesses you can exploit as you work to build your own business. You do need to be brutally honest here, and also look at what the potential roadblocks are-anything that might potentially stand in your way as you try to meet your goals and grow your business.

Barriers to Entry

Lenders and investors need to have a reasonable assurance they’ll be paid back, so they’ll want to know what would stop someone else from swooping in, doing what you do, and grabbing half the available business. Do you have technical knowledge that’s difficult to get? A specialized product no one else can manufacture? A service that takes years to perfect? It’s possible your industry has strict regulations and licensing requirements. All of these help protect you from new competition, and they’re all selling points for you.

Regulations

As we touched on above, you should cover regulations as a barrier to entry. If your field is covered by regulations, you do need to talk about how they apply to your business and how you’ll comply with them.

Six Sources for Market Analysis Information

The Market Analysis section of your business plan is far more than a theoretical exercise. Doing an analysis of the market really gives YOU the information you need to figure out whether your plans are viable, and tweak them in the early stages before you go wrong.

So, where do you start? Research is the key here, and there are several sources available.

1. The Internet

Some of the first information you need is about population and demographics: who your potential customers are, how many there are, and where they live or work. The U.S. Census Bureau has an impressive amount of these statistics available. USA.gov’s small business site is another good source for links to the U.S. Departments of Labor and Commerce, among others.

2. Local Chamber of Commerce

A lot of local information can be gotten from the chamber of commerce in the area where you plan to operate. Often, they can provide details into what the general business climate is like, and get even more specific about how many and what type of businesses are operating in their jurisdiction.

3. Other Resources

When actual statistical information isn’t available, you’ll often be able to put together a good picture of the market from a variety of other sources. Real estate agents can be a source of information on demographics and population trends in an area. Catalogs and marketing materials from your competition are useful. Many industry associations have a great amount of relevant information to use in putting your analysis together. Trade publications and annual reports from public corporations in your industry also contain a wealth of relevant information.

4. Customer Mindset

Take yourself out of the equation as the owner and stand in your customer’s shoes when you look at the business. As a customer, what problems do you have that need to be solved? What would you like to be able to do better, faster, or cheaper that you can’t do now? How does the competition work to solve those issues? How could this business solve them better?

5. the Competition

If you have a clothing store, visit others in your area. If you’d like to open a pizzeria, try pies from surrounding restaurants. If you’re a salon owner, park across the street and see what the store traffic is like and how customers look when they come out. Check out websites for pricing and other marketing information. Follow their Facebook pages. If you can’t be a customer of the competition, ask your customers and suppliers about them. Always be aware of what’s going on in the market.

6. Traditional Market Research

While you can gather a lot of data online, your best information will come from potential customers themselves. Send out surveys, ask for input and feedback, and conduct focus groups. You can do this yourself or hire a market research firm to do it for you.

What to Do With All That Data

Now that you’ve gathered the statistics and information and you’ve done the math to know there’s a need and customer base for your product or service, you have to show it off to your best advantage. You can start the market analysis section with a simple summary that describes your target customers and explains why you have chosen this as your market. You can also summarize how you see the market growing, and highlight one or two projections for the future.

If your information is dense with numbers and statistics, someone who reads your business plan will probably find it easier to understand if you present it as a chart or graph. You can generate them fairly easily with tools built into Google docs and free infographic apps and software .

Don’t assume that your readers have an understanding of your market, but don’t belabor simple points, either. You want to include pertinent, important information, but you don’t want to drown the reader in facts. Be concise and compelling with the market analysis, and remember that a good graphic can cover a lot of text, and help you make your point. It’s great to say you project sales to increase by 250% over the next five years, but it makes an even bigger wow when you show it in a graphic.

Always relate the data back to your business. Statistics about the market don’t mean much unless you describe how and where you fit in. As you talk about the needs of your target market, remember to focus on how you are uniquely positioned to fill them.

Don’t hesitate to break down your target market into smaller segments, especially if each is likely to respond to a different message about your product or service. You may have one market that consists of homes and another of small businesses. Perhaps you sell to both wholesale and retail customers. Talk about this in the market analysis, and describe briefly how you’ll approach each. (You will have more of an opportunity to do this in detail later in the plan.) Segmentation can help you target specific messages to specific areas, focusing in on the existing needs and how you fill them.

Remember to tailor your information to the purpose at hand. If your business plan is for internal use, you may not have to go into as much detail about the market since you and your team may already know it well. Remember, however, that the very act of doing the research may help you learn things you didn’t know, so don’t skimp on doing the work. This is a great opportunity to get information from outside that might affect your business.

It’s not about your ability to do professional-level market research; a plan intended for a bank or other lender needs to show your understanding of where your business fits into the grand scheme of things. Yes, you need to detail the information, but your main goal is to show how you’ve incorporated that knowledge into making solid decisions about the direction of your company. Use this section of your business plan to explain your understanding of your industry, your market and your individual business so that lenders and investors feel comfortable with your possibility for success.

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How to Do a Market Analysis for a Business Plan?

What is market analysis in a business plan.

Market analysis for a  business plan serves the purpose of exploring the suitability of your product or service for the market. 

Your market analysis for a business plan lets you see your position in the market. It helps you identify the market trends, product demand, buying trends, seasonality, competition, etc.

A good market analysis will prepare you for a successful launch and steady growth. The time you invest in exploring your target market is well-spent. 

In this article, we have discussed how to conduct market research for a business plan. Make sure you read till the end to fully understand  how to do a market analysis in business plan .

Want to write a business plan? Get help from our business plan writers for hire !

Why you should do market analysis for a business plan.

When you analyze your target market in-depth, you understand it better. You understand what market demands are and how your product can serve the market. This market knowledge will help you convince your lenders and investors to work with you. 

These are some reasons why you should include a market analysis business plan.

Reduce Risk

Target on the right customer base, know the trend, project revenues, set growth benchmarks , optimize marketing strategy .

Doing a market analysis will lower your risk of failure by helping you spot market pitfalls. When you know what lies ahead, you can plan better and prepare better. 

A market analysis for a business plan will help you identify the right customer base for your product or service. 

Many people cast a wide net at the start but a market analysis proves them wrong. 

For example, if we say that many Indians live in a neighborhood and an Indian food restaurant will be a sure hit there may be wrong. Maybe all they are eating at home is Indian food and they don’t wish to eat the same food at a restaurant. 

Another example would be thinking that since your product or service is a good match for small businesses, all small businesses are your target customers. 

When you do market analysis and look critically at your customer base, you can dodge false optimism.

All markets are unpredictable in one way or another. Knowing how the market behaves when changes occur and understanding the market trends is important for long-term success. 

Check for seasonality, innovation in the market, and consumer behavior trends. See how your industry responds to the changes in economy.

 A market analysis for a business plan can help you make sound revenue projections for your business. Your projections with data are no longer your wishful thoughts. 

If your revenue forecast is based on solid market research, potential investors and lenders will know it and consider you a serious candidate for funding. 

Every industry moves in a distinct way. Some industries have favorable business conditions and growth is rapid in that industry. 

Doing a market analysis and knowing your industry will help you set realistic growth benchmarks. When you set aggressive growth benchmarks with a reasonable chance of success, you can maximize your business growth. 

Your marketing strategy is how you’ll raise awareness and drive sales for your product or service. Your market analysis can tell you:

• how to reach your customers, 
• how you should design your offers, 
• how much will you need to spend 
• When will you achieve your marketing goals

What should you include in Market Analysis?

You will analyze the target market in business plan in this section. Here is what you should include in a market analysis for business plan.

Industry Outlook

Industry outlook shows the direction of your industry. It shows if you are in a growing industry, a stagnant, or a declining industry. 

Consider adding these points to  your industry outlook:

• Are you in a big market like casual wear clothing or a niche market like heavy snow coats 
• Discuss the product life cycle 
• Discuss projected year-over-year growth

Target Market 

Determine and specify your target market. Your initial, super-optimistic estimations about your target market may be incorrect. 

Base your assumptions on data. Specify your target market by using these markers. 

• Identify your target customers’ demographics like gender, age, location, income, education, etc. 
• Create a buyer persona to show what your ideal customer looks like 
• Include research and surveys about your target market like focus groups, and feedback surveys

Product/Service Demand 

Document your product or service demand in the market. See how many units of similar products or services are sold per year and how many people make the purchase. 

Market Growth Prospects 

Assess the overall change in your industry. Every industry has different dynamics. Some industries react to economic shocks with a rapid decline while others may show resilience. 

Many consumer goods industries stay stable for a long stretch of time and you can spot the decline years ahead. On the same lines, discuss the growth prospects of your industry and the market.

Market Trends 

Trends are the sudden changes that disrupt. The fashion industry is one of the best examples to study market trends. 

Watch for similar market trends in your industry and document them. 

Competitor Analysis 

Competitor analysis is the meat of your market analysis for a business plan. These businesses are like case studies as you can learn from their business practices and growth trajectories. 

Industry Entry Barriers 

If the industry entry barriers are low, you’ll compete with a lot of businesses. However, your chances of early success are higher in such industries as you can easily reach the breakeven point and sustain your business. 

Hard entry barriers mean there are established players in that industry and it will take time for you to grab a share of the market. 

Industry Regulations 

See the level of regulations for your industry and make a plan ahead to deal with them. The regulations increase business operating and overhead costs.

When doing industry analysis in business plan, list the industry regulations you’ll need to care for. 

Access our free business plan examples now!

How to do market analysis for a business plan.

A market analysis is about collecting all the necessary information and research and getting into the details of your industry and competitors. 

You can do a market analysis using this simple framework.

Decide your Purpose 

Do industry research, define your customer, understand competition, collect more data for the market , make use of this data .

You may be doing a market analysis for knowing your industry better or for convincing a potential lender or investor. Once you determine the purpose of market analysis, you can estimate the time and type of research the process will take.

Discuss the industry trends and see how the market is changing over the past few years. You’ll also need to include industry forecasts to complete the picture. 

A comparative market analysis helps you identify your competitive advantage. Make sure to include this in the market analysis.

Defining your customer helps you understand their needs. Define your customer in terms of demographics like:

• Occupation 

Build a buyer persona for your product or service. This will help you understand the customer well and design products and services for your ideal customer. 

Pro Tips: Learn how to write a business plan products and services section.

Understanding your competition will prepare you for the market. Look into their strengths and weakness. See what businesses are successful in your industry and study them to understand how they are doing it. 

Steps for doing competitor analysis business plan.

• List your top competitors 
• Do a SWOT analysis for each competitor 
• Compare their product or service with yours 
• Analyze why a customer chooses their product over others 
• Identify opportunities on how you can improve your product

The more data you have, the better your chances are of doing a top-notch market analysis. 

Collect your data from credible sources. Make sure your data is factually correct. You will be making decisions on the basis of this data. 

Here are some reliable and credible data sources that you use in your market analysis. 

• U.S. Bureau of Labor Statistics
• U.S. Census Bureau
• Local Chamber of Commerce & Industries 
• Trade Journals and Academic Research
• Your own SWOT analysis
• Market surveys or feedback

It is time to make sense of the numbers. 

The market analysis includes details from business conditions to long-term success in the industry. It calculates risk for your business.  Some factors may not be in your favor and you’ll have to decide on your chances of success.  

Keep your data organized in sections. Organize your data with a goal to present it before investors, lenders, and the team. That way, you’ll keep it simple and easy to understand.

Do you want to see an example of market analysis in a business plan? See our business plan examples to understand how it is done. 

Still wondering what is a market analysis in a business plan? See this example of market analysis in a business plan and writer a killer market analysis. Download the  Business Plan Market Analysis Example PDF  here. 

Market Research from WiseBusinessPlans

At Wise Business Plans™ we pride ourselves on giving you the best market research for business plans available. We subscribe to commercial software programs and pay hefty licensing fees to give your business a competitive edge. 

Instead of spending hours on figuring out how to do market research for a business plan, hire professionals from WiseBusinessPlans and get a top-notch market research report for your business plan. 

Market Research Institutes and Databases we use 

IBIS World’s Industry Market Research Reports are powerful business tools that provide strategic insight and analysis on over 700 U.S. industries. 

ESRI: Market Research combines GIS (Geographic Information System) technology with extensive demographic, consumer spending, and business data for the entire United States to deliver on-demand, boardroom-ready reports and maps.

Dun & Bradstreet: D&B’s products and services are drawn from a global database of more than 130 million companies.

Hoovers : Hoover’s database of industry information, 65 million company records, and 85 million people records you can deliver valuable business insight to your employees and customers.

First Research: First Market Research is the leading provider of market analysis tools that help sales and marketing teams perform faster and smarter, open doors, and close more deals.

Worried about writing a business plan? Hiring a business plan writer can ease your worries and create a strong plan.

Sample research.

Base your Market Research on data and expertise you can trust.   Hire professional market researchers from WiseBusinessPlans and take a solid start. 

A market analysis in a business plan is an assessment of the target market and industry in which your business operates. It involves researching and analyzing factors such as market size, competition, customer needs, trends, and growth potential.

Gather information for a market analysis by conducting market research through various methods like surveys, interviews, online research, and analyzing industry reports. Collect data on customer demographics, market trends, competitors, and customer preferences.

Include key components in a market analysis, such as an overview of the industry, target market segmentation, customer profiles, competitor analysis, market trends and growth projections, and barriers to entry. Use this information to identify opportunities and assess the viability of your business.

Analyze the competition by identifying direct and indirect competitors in your target market. Assess their strengths, weaknesses, market share, pricing strategies, and unique selling propositions. This analysis will help you understand your competitive landscape and differentiate your business.

A market analysis is crucial for a business plan as it provides insights into the market potential, customer demand, and competitive landscape. It helps you make informed decisions, develop effective marketing strategies, and demonstrate to investors or lenders that there is a viable market for your products or services.

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Market Analysis

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Have you ever asked the question, “what is a  market analysis ?” Well, the answer to that is a document that can benefit your company’s current and future operations in a myriad of ways. There are several reasons why businesses conduct these analyses and you’re going to read all about them right here in this article. Press on and find out how this document should contain not only a quantitative assessment but also a  qualitative research approach as well. Discover the important tips and most sought out questions the further you go. Before anything else though, let’s take a look at some wonderful examples right now.

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What is a Market Analysis?

Now that you’ve seen templates like the  real estate market analysis , and can conceivably understand why variants like a stock market analysis or a basket market analysis are useful, let’s talk about one particular misunderstanding. Many believe that market analysis is what serves as the foundation of marketing activities. In reality, market analysis is what helps businesses identify the changes it can implement to ensure that its branding efforts succeed in promoting awareness in the marketplace.

How is this done, you ask? There are several ways and one prime example is the comparative market analysis, which can help businesses understand their market properly. Another market analysis example is  operational analysis , which allows businesses the opportunity to project the marketplace in different manners. Hence, making certain corporate decisions like segmentation and market niche development can be more efficient.

How to make an effective Market Analysis

If you want to identify the threats and opportunities that are present in the marketplace, having a market analysis can help you a lot. This will also allow you to capitalize on the strengths of your business and develop the grey areas or the weaknesses of your company. Listed below are some of the tips that you can find useful if you are already prepared to create a market analysis or even a  company analysis :

Step 1: Keep the Audience in Mind

It is important for you to know the audience who will review the market analysis. As a part of the business plan of the company, you must create a presentation that is fit to be assessed by the higher management.

Step 2: Organized Presentation is Key

Your market analysis must be presented in an organized manner. The same goes when you are creating a  SWOT analysis for your business  where you have to develop a format where your discussion is arranged is a certain way.

Step 3: Make Sure it is Understandable

It must be easy for the audience of your market analysis to see the flow of your statements so that they can identify the relevance of each  specific analysis clause to the current condition of the business. For that reason, do not go overboard with complexities if there are simpler options available to you. This can relate to the terms you use or even the way you present the relevant information.

Step 4: Do Not Forget About the Market Segmentation

Remember that it is essential for you to give focus on the segmentation of the market. Always consider demographics when developing a market analysis as it can affect the entire process a lot. You may also see  needs analysis .

What is the purpose of a market analysis?

A market analysis is done to help assess a company’s internal resources, as well as how the external market will affect it. Among the specific factors that a marketing analysis will look into includes opportunities, risks, customer profitability , and competition. That is, more or less, also what the market analysis definition is all about.

What are the elements of a market analysis?

There are seven main elements of any market analysis. These are the market size, market profitability, market growth rate, industry cost structure, distribution channel, key success factor, and market trends.

How long does it take to conduct a market analysis?

The typical duration of a market analysis is six to seven weeks. Small projects tend to require up to ten to thirty interviews, but larger projects will need more and thus, take longer.

Always keep in mind that being able to collect data is not the end of the procedure. You need to ensure that the proper assessment of gathered information is present in the critical analysis that you will develop. Create a market analysis now and implement it accordingly. If that’s not something that you can practically do, then be sure to pick a market analysis template from our varied selections. Regardless of what you decide on, make sure to not forget the contents of this post so you can have a guide to the creation of your company’s own market analysis. Don’t waste any more time and act now!

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How to Write a Market Analysis for a Business Plan?

Free Market Analysis Kit

• April 11, 2024

13 Min Read

Market analysis is the foundation upon which the success of your business relies.

Whether you are a seasoned entrepreneur planning to enter a new geographical market or an emerging startup struggling to place together your business plan—a thorough understanding of the market, customers, and competitors is essential for a business to thrive successfully. 

Now, writing a market analysis for your business plan is quite a challenge. But with this step-by-step guide, we have made the entire process quite simple and easy to follow. 

Also, get tips to write this section and our curated market analysis example for a business plan. 

Ready to dive in? Let’s get started.

What is Market Analysis?

Market analysis is a detailed analysis of your business’s target market and the competitive landscape within a specific industry. It is an important section of your business plan offering a thorough insight into the state of the industry, the potential target market, and your business’s competition.

A well-targeted market analysis forms the base upon which the foundation of your business relies. It assures the readers that you have a thorough understanding of the market you are about to enter.

Why should you Conduct Market Analysis?

Wondering how market analysis will contribute to the success of your business? Well, check these benefits of conducting a comprehensive market analysis for your business:

1. Reduces the risk

Instead of operating on instincts and gut feelings, market research enables you to make decisions based on data and analysis. When you know with surety what works and what doesn’t, you will make decisions that are more likely to succeed than fail.

To summarize, having an in-depth market analysis will reduce the risks associated with starting a business in a thriving marketplace.

2. Identifies emerging trends

A market analysis identifies emerging market trends and patterns and thereby helps you stay at the top of the competition. Not only the trends, but you can also identify challenges that may potentially arise in your business and design a pivot plan.

3. Assist in product development

A detailed analysis of the target market, industry, and competitors helps you create the product that the customer will be willing to buy. The analysis will not only assist in product development, but also with pricing, marketing, and sales strategies to ensure thriving business conditions.

4. Optimize your target market

Your business is not for everyone and the sooner you realize this the better. A target market analysis helps in understanding who your potential customers are and accordingly strategize your marketing efforts to attract them.

5. Establishes evaluation benchmarks

Market analysis benefits your business by offering evaluation metrics and KPIs. Such metrics help in measuring a company’s performance and its edge over the competitors.

Lastly, a thorough market analysis is quintessential if you are planning to secure funds. As a matter of fact, it is non-negotiable.

Now that you know how important having a market analysis section is, let’s learn a detailed way of conducting such analysis.

How to Simplify Your Market Analysis?

Market analysis is a broad concept covering a wide range of details. There’s no denying that it is a tiring task requiring extremely dedicated efforts.

From understanding the purpose of research to undertaking surveys, gathering data, and converting it into worthy analysis—the research itself is a lot for an individual to cover.

Upmetrics market analysis tool kit includes a variety of guidebooks and templates that will help you with target customer analysis , surveys, and competitor surveys.

The documents will guide you in a strategic direction to conduct qualitative research and analysis. They are well-crafted and quite simple to follow even for someone with no prior experience at market analysis.

Got it? No more side talking, let’s get straight to what you are here for.

How to Conduct a Market Analysis?

Conducting thorough market research and analysis could be a hassle, but not with this easy-to-follow 7-step guide. Let’s get over it.

1. Determine your objective

When you write a business plan , market analysis is going to be one prominent component.

However, it is important to know the clear objective of conducting such analysis before you kickstart.

For instance, are you planning to acquire funding from investors or are you conducting this research to test the viability of your business idea? Are you looking to add a new product segment to your business or are you looking to expand in other states and countries?

That being said, the purpose of your market analysis will determine the extent and scope of research essential for your business.

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2. Conduct an Industry Analysis

In this part of your analysis, you will highlight the state of the current industry and show where it seems to be moving. Investors would want to know if the industry is growing or declining, so present accordingly.

This section should include metrics for market size, projected growth, average market growth rate,  product life cycle, and market trends.

Ensure that you gather data from highly authoritative sites like the US Bureau of Labor Statistics (BLS), Bureau of Economic Analysis, and industry publications to make your analysis.

To make this section enriching and meaningful, begin with a macro industry overview and then drill down to your specific market and business offering as thorough details as possible.

3. Identify your target audience

This section of your market analysis is dedicated to your potential target customers.

And, although your product might be suitable for everyone, there is a high possibility that not all of them will be your customers due to many reasons.

It is therefore better to target a specific category of customers to grow your business effectively and efficiently.

Now, you can begin by creating a buyer’s persona of your ideal customer describing their demographic and psychographic details. This includes talking about the age, gender, location, income, occupation, needs, pain points, problems, and spending capacity of your target customer.

You can conduct surveys, interviews, and focus groups, and gather data from high-end sources to get essential details for a customer profile.

However, make sure that you dig into details to make this section resourceful for business planning and strategizing.

4. Analyze your competitors

Competitive analysis is the most important aspect of your market analysis highlighting the state of the competitive landscape, potential business competitors, and your competitive edge in the market.

Now, a business may have direct as well as indirect competitors. And while indirect competition won’t affect your business directly, it definitely would have an impact on your market share.

To begin this section, identify your top competitors and list them down.

Conduct a SWOT analysis of your top competitors and evaluate their strengths and weaknesses against your business.

Identify their USPs, study their market strategies, understand how they pose a threat to your business, and ideate strategies to leverage their weaknesses.

Don’t undervalue or overestimate your competitors. Instead, focus on offering a realistic state of competition to the readers.

Additionally, readers also want to know your strengths and how you will leverage a competitive edge over your competitors. Ensure that this section highlights your edge in terms of pricing, product, market share, target customer, or anything else.

Want to create a SWOT analysis for your business?

Craft a powerful SWOT Analysis in just minutes using our user-friendly and free online SWOT Analysis Generator Tool!

5. Calculate your market share

The analysis section of your business plan must also include details of your market share.

If your estimated market share is not big enough, chances are your business idea might not be profitable enough to pursue further.

Now, you can use these proven metrics to forecast your market share:

TAM (Total available market)

It represents the total demand available in the market. In other words, it is the maximum amount of sales or revenue the market has to offer.

SAM (Serviceable available market)

It represents the segment of TAM that you can obtain with your solution within your limitations. These limitations can be geographical location, business model, type of product, etc.

SOM (Serviceable obtainable market)

It represents the segment of SAM that you can realistically capture after considering your competitors, customer preferences, production capabilities, etc.

SOM is your estimated market share. Once you have calculated it, you can actualize it via suitable pricing strategies.

Apart from this method, you can also use other approaches like top-down, bottom-up, and triangulation to estimate your market share.

However, whatever method you use, ensure that the projections are realistic and attainable.

6. Know the regulations and restrictions

Before entering a new market or starting a new business , you need to know the regulations and restrictions in your industry.

Understanding these can help you stay out of legal pitfalls and inspire confidence in prospective investors.

Some of the regulations you need to know are:

• Government policies
• Tax regulations
• Trade policies
• Employment laws
• Environmental regulations
• Security and privacy
• Protection of intellectual properties

Include these details in your market analysis section to help readers understand the risk value and federal regulations associated with your business.

7. Organize and implement the data

After completing your research, it’s now time to make sense of all the data you’ve gathered.

There is no strict structure when it comes to organizing your market analysis. However, ensure that your analysis includes specific sections for objective, target market, and competition.

Focus on creating an easy-to-digest and visually appealing analysis section to help the readers gather essential essence.

Now, it’s a waste if you are not putting all this research to some use. Identify the business areas where you can implement your research be it product development, exploring the new market, or business operations, and develop strategies accordingly.

All in all lay the foundation of a successful business with a thorough and insightful market analysis. And, you can do it by having an organized market analysis section in your business plan.

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Tips to Write Your Market Analysis

After conducting thorough market research, it is important to present that information strategically in a business plan to help the readers get meaningful insights.

Well, here are a few tips to help you write the market analysis for a business plan.

1. Stay in context

Remember the objective of your market analysis and stick to it. Keeping the context in mind, identify what essential information to present and back them up with high-end sources.

Also, tie your data with essential analysis to show how your business would survive and thrive in the market.

2. Add visual graphics

No one prefers shifting through pages of pure text content. Graphics and visuals make your market analysis easy to absorb and understand. You are more likely to capture readers with visual attractiveness rather than risk their attention with pure textual content.

3. Offer an engaging summary

Offer readers a quick overview of your detailed market analysis by including a summarizing text. A summary will help readers gather a macro perspective before diving deep into hard facts and figures.

4. Avoid fluff and repetition

Ensure that everything you present in your market analysis section holds a meaning. Avoid adding inessential and fluff information.

To best identify whether or not the information is essential for the reader, ask this simple question: Will the reader learn something about my business’s market or its customers from this information?

If not, the information is most likely inessential. And, those were some quick tips to ensure effective market analysis for your business plan.

Market Analysis in a Business Plan Example

Before we conclude, check out this market analysis example from Upmetrics’ sample yoga studio business plan.

Business Name: Lotus Harmony

Location: Green Valley

Core Objective for Market Analysis

Our goal for the market analysis at Lotus Harmony is straightforward: to deeply understand what the Green Valley community seeks in yoga and wellness. We’ll closely look at local demand and the competitive scene, shaping our services to precisely meet community needs. This approach promises to make Lotus Harmony a distinct and beloved wellness destination in our neighborhood.

Industry Overview of the Green Valley Yoga Market

Market Size:

Green Valley is home to nearly 1M yoga enthusiasts, predominantly aged 25-45. This demographic suggests a robust market for yoga and wellness, ripe for a studio that offers diverse and inclusive programs.

Projected Growth:

The yoga community is expected to grow by 5% annually over the next five years. This growth is driven by an increasing interest in holistic health, presenting a fertile ground for a new yoga studio to thrive.

Market Trends:

A rising trend is the demand for comprehensive wellness services, including mindfulness and nutrition, alongside traditional yoga. Specialized classes like prenatal yoga are also gaining popularity, signaling opportunities for niche offerings.

By tapping into these insights, a new yoga studio in Green Valley can strategically position itself as a premier wellness destination, catering to the evolving needs of the community.

Target Market Analysis for Lotus Harmony

Lotus Harmony Yoga Studio’s ideal customers are mainly Urban Millennials and Gen Z (ages 18-35) who prioritize:

• Wellness and mindfulness as part of their lifestyle.
• Affordable, holistic health experiences blending physical and mental well-being.
• Convenience with flexible class schedules and online access.
• Community and sustainability, preferring spaces that offer personal growth and eco-consciousness.
• A welcoming atmosphere that supports inclusivity and connection.

Competitive Landscape for Lotus Harmony

Lotus Harmony’s success relies on understanding consumer preferences and income, securing prime locations, attracting patrons, and offering quality services. Competing with gyms, wellness centers, and home fitness, it positions itself as a holistic wellness choice, aiming to stand out in Green Valley’s wellness scene.

Market Share for Lotus Harmony

Regulatory Requirements for Lotus Harmony

Here are a few aspects of legal compliance essential for Lotus Harmony:

• Business Registration and Licensing
• Zoning and Land Use Permits
• Health and Safety Compliance
• Professional Liability Insurance
• Instructor Certifications
• Building Safety Certificates
• Accessibility Compliance
• Tax Registration

Final Thoughts

It takes an extremely dedicated effort to undertake market research and craft it into a compelling analysis. However, it’s a worthy business planning effort that will set a cornerstone of success for your business.

Don’t worry. You don’t need to spend days figuring out what and how to write your market analysis. Upmetrics, an AI-powered business planning app , will help you write your overall business plan in less than an hour.

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Frequently Asked Questions

What are the 4 c's of marketing analysis.

The 4 C’s of marketing analysis are customer, cost, convenience, and communication which would together determine whether the company would succeed or fail in the long run.

Is SWOT analysis a market analysis?

SWOT analysis is a small but important tool for market research that would determine the success of a business or its edge over other businesses based on strengths, weaknesses, opportunities, and threats.

How to do market research for a business plan?

To conduct market research for a business plan, start by analyzing your industry, identifying your target audience, and evaluating competitors. Use data from credible sources to understand market trends, customer needs, and potential challenges.

How long does a market analysis take?

Market analysis can take anywhere from 4 to 8 weeks, given that secondary sources of data are easily available. However, for complex large-scale projects, analysis can take up to months to complete.

What are the three core components of a market analysis?

The three most crucial components of a market analysis are the study of market size and market share, target market determination, and competitor analysis.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write the Market Analysis Section of a Business Plan

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

The market analysis section of your business plan comes after the products or services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims.

In general, the market analysis section should include information about the industry, your target market, your competition, and how you intend to make a place for your own product and service. Extensive data for this section should be added to the end of the business plan as appendices, with only the most important statistics included in the market analysis section itself.

What Should a Market Analysis Include?

The market analysis section of your small business plan should include the following:

• Industry Description and Outlook : Describe your industry both qualitatively and quantitatively by laying out the factors that make your industry an attractive place to start and grow a business. Be sure to include detailed statistics that define the industry including size, growth rate , trends, and outlook.
• Target Market : Who is your ideal client/customer? This data should include demographics on the group you are targeting including age, gender, income level, and lifestyle preferences. This section should also include data on the size of the target market, the purchase potential and motivations of the audience, and how you intend to reach the market.
• Market Test Results : This is where you include the results of the market research you conducted as part of your initial investigation into the market. Details about your testing process and supporting statistics should be included in the appendix.
• Lead Time : Lead time is the amount of time it takes for an order to be fulfilled once a customer makes a purchase. This is where you provide information on the research you've completed on how long it will take to handle individual orders and large volume purchases, if applicable.
• Competitive Analysis : Who is your competition? What are the strengths and weaknesses of the competition? What are the potential roadblocks preventing you from entering the market?

7 Tips for Writing a Market Analysis

Here is a collection of tips to help you write an effective and well-rounded market analysis for your small business plan.

• Use the Internet : Since much of the market analysis section relies on raw data, the Internet is a great place to start. Demographic data can be gathered from the U.S. Census Bureau. A series of searches can uncover information on your competition, and you can conduct a portion of your market research online.
• Be the Customer : One of the most effective ways to gauge opportunity among your target market is to look at your products and services through the eyes of a purchaser. What is the problem that needs to be solved? How does the competition solve that problem? How will you solve the problem better or differently?
• Cut to the Chase : It can be helpful to your business plan audience if you include a summary of the market analysis section before diving into the details. This gives the reader an idea about what's to come and helps them zero in on the most important details quickly.
• Conduct Thorough Market Research : Put in the necessary time during the initial exploration phase to research the market and gather as much information as you can. Send out surveys, conduct focus groups, and ask for feedback when you have an opportunity. Then use the data gathered as supporting materials for your market analysis.
• Use Visual Aids : Information that is highly number-driven, such as statistics and metrics included in the market analysis, is typically easier to grasp when it's presented visually. Use charts and graphs to illustrate the most important numbers.
• Be Concise : In most cases, those reading your business plan already have some understanding of the market. Include the most important data and results in the market analysis section and move the support documentation and statistics to the appendix.
• Relate Back to Your Business : All of the statistics and data you incorporate in your market analysis should be related back to your company and your products and services. When you outline the target market's needs, put the focus on how you are uniquely positioned to fulfill those needs.